Flower Mound Town Council took one step in funding some public works projects by approving the intention to authorize the publication of a notice of intention to issue certificates of obligation April 1.

The details

The principal amount would not exceed $7.72 million, according to a Town Council agenda memo. The issuance would be published in a newspaper of general circulation in the town—the Denton Record-Chronicle—once a week for two consecutive weeks, with the first publication at least 46 days prior to the date stated in the ordinance authorizing the issuance of the certificates of obligation. The issuance would also be published on the town website, said Julie Taylor, town director of treasury operations.

Zooming in

The projects to receive funding include:
  • A $400,000 street project for Scenic Drive, from Walsingham Drive to FM 1171
  • Stonehill Pump Station motor replacement, at a cost of $2.96 million
  • Various wastewater projects, with the largest ticket item of $1.3 million being a Kirkpatrick Lane and Stapleton Street sanitary street rehabilitation. The overall cost is $4.25 million.
The total cost with the finance costs of $105,000 added is about $7.72 million. Michael Martin with Hilltop Securities spoke to council about the financial aspects of the issuance.

The background

The certificates will pay for the contractual obligations incurred for projects approved in the fiscal year 2023-24 five-year Capital Improvement Program. In October, council approved a reimbursement resolution for an amount not to exceed $9.13 million to fund improvements to street, water and wastewater system projects and the costs of issuance of the debt. CIP amendments during the fiscal year have modified funding sources and moved project start dates to future years, thus reducing the proposed debt issuance, the memo states. Two projects were deferred until the next fiscal year, thus trimming the amount by $1.4 million, Taylor said.

A parameters ordinance will be presented for council’s approval June 17, with the sale being conducted on the proposed date of June 18. Ad valorem taxes will fund the general capital projects, while the utilities system will fund the waterworks and sewer system improvements. Construction projects have different timelines, with each beginning this year, town officials said.